Law:

Section:

State Bank of Pakistan BCD Circular No.6 of 1990)----Cl.5---Disclosure of liability and financial status of its customer by Bank to other banks---Validity---Purpose of such disclosure was to enable other banks to decide the course of their future business transaction with such customer---Such mechanism would save financial institutions falling prey to defaulters---Such exercise was aimed at to conduct transparent business and provide financial institutions, who were holding depositors funds, to look before they leap with regard to financial commitment---State Bank of Pakistan BCD Circular No.6 of 1990 was not violative of fundamental rights of the customer. JUDGMENT SAIYED SAEED ASHHAD, J.---This Civil Petition for leave to appeal has been filed against Sindh High Court judgment, dated 9-3-2005. 2. Brief facts of the case are that in pursuance of BCD Circular No.6 of 1990 issued by State Bank of Pakistan, Clause 5 of which permits a bank to disclose/intimate the liability of any party/debtor to respondent No.3, respondent No.4 intimated the liability of the petitioner. It was the case of the petitioner that while respondent No.4 intimated the liability of petitioner outstanding against it, it should have also intimated its liability towards the petitioner by way of counter claim which would have presented true picture of the liabilities of both the parties before respondent No.3. Such course would not have allowed respondent No.3 to take a one sided view against the petitioner and intimate all the banks/financial institutions working under respondent No.2 State Bank of Pakistan of the fact that the petitioner was a defaulter as a result of which all of them refused/stopped financial facility to the petitioner causing in grave and serious damage to his business. 3. For deciding this petition it will the appropriate to reproduce relevant portion of the High Court judgment dealing with object/purpose of Circular No.6 as well as the objection relative to supply/one sided information of outstanding debt of the petitioner without disclosing the counter claim of the petitioner. Relevant portions on page 21 of the High Court order are as under:-- "We have considered…

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